SCHOLARLY ARTICLE

Aline Veronese da Silva and Cleiton José Carneiro Júnior | Renewable Energy

The expansion of renewable electricity sources is an important driver toward energy transition. The Brazilian electricity matrix is cleaner than the world’s average, but the country needs to reduce its dependency on hydropower. Thus, this study investigates the effects of expanding renewable electricity sources on sustainable development (SD) in Brazil. We used a DEA-based approach to assess Brazilian regions’ efficiency across three SD dimensions: social, economic, and environmental. This analysis considered the technology used in power plants in Brazilian regions, including renewable and fossil-based options. A dynamic analysis using the Malmquist Index measured the efficiency improvement over a 12-year period. Our results suggest that regions with renewable power plants are more consistent than their fossil-fuel peers in achieving higher socioeconomic scores. The dynamic analysis found that regions with renewable power plants presented greater efficiency changes than their fossil-fuel peers. Also, economic indicators, such as the number of direct jobs and income, were not assessed significantly in the efficiency computation. Findings suggest that changes in socioeconomic efficiency resulting from trade-offs between costs and socioeconomic indicators were more significant in some cycles after implementing public policies to promote renewables. The Brazilian case indicates that expanding renewables offers benefits beyond environmental gains.

Full article: https://www.sciencedirect.com/science/article/pii/S0960148125006585